The budgetary decision to remove import duty on certain types of computers and computer devices would benefit the users of PC servers and midrange and mainframe computers, but it may have little impact on branded or unbranded PCs.
Industry sources say that most computers and computer devices are already being imported duty free, adding that the budget has removed import duty on PC servers and storage devices plus midrange computers. PC servers are the machines needed to run a network. Midrange computers or mainframes are basically huge machines of old times in use of public sector companies. Storage devices are the ones that help a computer store digital videotapes and other things.
The decision would have a nominal impact on the prices of PCs for the very reason that PCs - other than the products identified above - are already enjoying the duty exemption. Another reason is that the prices of colour monitors are also likely to stay where they are because they, too, are already duty free.
On the contrary, the 01 per cent withholding tax imposed on imports is likely to cause an increase in the monitor prices, said an official of a multinational engaged partly in the manufacturing of computer devices and monitors.
It is said that branded computers whose prices are much higher than the unbranded ones, have a market share of only 30%.
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